Saregama India Q1 FY27 Results (NSE: SAREGAMA)
Signal: Margin expansion
The read
Q1FY27 marks the 5th consecutive quarter of YoY operating margin expansion (OPM from 28% → 37%), driven by Music's high-margin royalty model and Artist Management scaling; PAT grew 40.6% YoY with clean earnings quality. Video and Events are still loss-making but losses are narrowing; the standalone-vs-consolidated gap shows Artist Management profitability sits in subsidiaries, not the parent — consolidation is value-accretive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2.64 Cr | 27.5% | -73.2% |
| EBIT | ₹0.74 Cr | 42.0% | |
| Net profit | ₹0.52 Cr | 40.6% | |
| EPS | ₹2.69 | 41.6% | |
| EBIT margin | 37% |
P&L walk
Revenue grew 27.5% YoY to ₹263.6 Cr, led by Music (28.8%) and Artist Management (102.4%); OPM expanded 900bps to 37% despite a sharp QoQ fall — the 5th straight YoY margin expansion, driven by favourable mix toward high-margin Music and Artist Management segments and lower Video losses.
Segments
Music segment (70% of revenue) grew 28.8% YoY with segment PBIT margin of 51.4%, driving overall profitability; Artist Management revenue doubled to ₹46.02 Cr (102.4% YoY) turning profitable (₹4.76 Cr PBIT vs ₹1.58 Cr last year); Video remained a drag with –₹4.34 Cr PBIT loss (vs –₹6.48 Cr loss in Q1FY26), Events near break-even (₹–0.01 Cr vs –₹2.81 Cr loss last year), both improving but still negative.
Key positives
- Consolidated revenue grew 27.5% YoY to ₹263.6 Cr — fastest growth in 5 quarters.
- OPM expanded 900bps YoY to 37%, 5th consecutive quarter of margin expansion.
- Artist Management revenue doubled (+102.4% YoY), turned segment-profitable at ₹4.76 Cr PBIT.
- PAT grew 40.6% YoY with clean earnings quality (other income <20% of PBT).
- EPS tracked PAT; no dilution.
Key concerns
- Video segment revenue fell 52.4% YoY and remained loss-making at –₹4.34 Cr PBIT.
- Events segment revenue surged 214% but from a low base and remained at –₹0.01 Cr PBIT (near breakeven).
- QoQ revenue fell 73.2% — typical Q4-to-Q1 seasonality in entertainment (Q4 includes large film/event releases).
- Finance cost jumped 121.4% YoY, though still small at 0.8% of revenue.
Research and educational content only. Not investment advice.